InterOil Corporation

InterOil Corporation

June 07, 2005 10:17 ET

InterOil Corporation Drilling Report No.3 June 7, 2005

TORONTO, ONTARIO--(CCNMatthews - June 7, 2005) - InterOil Corporation (TSX:IOL) (AMEX:IOC) (ASX/POMSoX:IOC):

Black Bass Prospect

Type: Oil / Gas exploration well

Location: PPL 236, Eastern Papuan Basin

-8degrees 30' 7.4"S / 146degrees 23' 12.53"E

Current Status: Past data: Set 20" conductor at 33 feet (10
meters), Set 13-3/8" surface at 119 feet (36
meters), Set 9-5/8" intermediate casing at
1,178 feet (357 meters). Set 7" intermediate
casing at 3,100 feet (945 meters).

Current operations - drilling ahead with 61/4"
drill bit at 4,596 feet (1,401 meters) to the
lower target objectives. Drilling of the upper
seismic target penetrated a sandstone
formation in lieu of a limestone reef.
Currently drilling the secondary seismic
target with plans to run wireline logs to
evaluate the penetrated objectives upon
reaching total depth.

Planned Total Depth: Approximately 5,740 feet (1,750 meters) deep.

Operator: InterOil subsidiary, SPI (210) Limited.

Prospect Description: This well is targeting a reef limestone, and
secondary targets identified by a seismic

FOR FURTHER INFORMATION: Please see the InterOil web site at

InterOil currently has no reserves as defined in Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Any information contained herein regarding resources are references to undiscovered resources under NI 51-101, whether stated or not.

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